On January 14, the UK Financial Services Authority (FSA)confirmed that it will allow the ban on short selling stocks in UK financial sector companies to lapse with effect from 00:00:01 on January 16.

The FSA also confirmed that it will extend its disclosure obligation for short selling of stocks in UK financial sector companies until June 30 (see the January 9, 2009, edition of Corporate and Financial Weekly Digest). Disclosure of a net short position in the stock of a UK financial sector company will continue to be required once a position reaches 0.25% of a relevant firm’s issued share capital and, with effect from January 16, further disclosure will be required if a short position changes by a further 0.10% of issued share capital.  

The FSA intends to issue a further consultation paper with longer-term options for a UK short-selling regime shortly.